Asian stocks rose, driven by exporters, on speculation Japan will unveil more measures to stimulate its economy in the aftermath of the nation’s worst earthquake.
Canon Inc. (7751), a camera maker that counts Europe and the Americas as its biggest markets, rose 1.5 percent in Tokyo, while Elpida Memory Inc. surged 5.6 percent. St. Barbara Ltd., an Australian gold producer, added 1.3 percent after gold increased to a record for a second day in New York yesterday on demand as a hedge against inflation. Dart Energy Ltd., a gas explorer, surged 5 percent in Sydney after announcing a “significant resource” at its projects.
The MSCI Asia Pacific Index gained 0.3 percent to 135.36 as of 11:15 a.m. in Tokyo. About six stocks advanced for each five that fell in the index. The Asia-Pacific gauge rose for the past two weeks as Japanese companies began resuming production after the nation’s worst earthquake on record last month and as Chinese firms posted profits that beat analyst estimates.
“The biggest reason for the gains in Japanese exporters is because of the yen weakening,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees about $104 billion. “There are expectations that there will be more monetary-easing measures taken in Japan. Global inflation is something that we have to remain cautious about.”
Japan’s Nikkei 225 (NKY) Stock Average rallied 0.6 percent amid speculation the Bank of Japan will keep interest rates low as the nation recovers from the earthquake and tsunami while borrowing costs in other developed nations rise.
U.S. Futures
South Korea’s Kopsi Index declined 0.4 percent. Australia’s S&P/ASX 200 Index dropped 0.1, even as a report showed Australian employers added more workers than economists forecast in March.
Futures on the Standard & Poor’s 500 Index fell 0.1 percent today. The index rose 0.2 percent yesterday as Cisco Systems Inc. spurred a technology rally and plans by European lenders to raise capital boosted financial shares.
The Bank of Japan is considering offering a credit program to spur banks to lend to companies with cash-flow shortages in the wake of a magnitude-9 quake on March 11, people familiar with the matter told Bloomberg News. The plan may be presented as early this month, they said this week, speaking on condition of anonymity because the discussions weren’t public.
The yen tumbled yesterday against all of its most-traded counterparts tracked by Bloomberg on bets the Bank of Japan will expand economic stimulus as the nation recovers from its worst earthquake on record, and on speculation the European Central Bank will increase borrowing costs.
Following U.S.
The yen weakened to as low as 85.50 per dollar today, compared with 85.27 at the close of stock trading in Tokyo yesterday. Against the euro, the yen traded at 122.22 today, from 121.66 yesterday. A weaker yen versus the dollar and euro boosts the value of U.S. and European income at Japanese companies when repatriated.
“The yen is likely to continue to weaken,” said Mitsushige Akino, who oversees about $450 million in Tokyo at Ichiyoshi Investment Management Co. “Within the exporters, the electronic companies and precision-equipment makers are likely to be bought following high-tech stocks that were bought in the U.S.”
Stronger economic growth in Germany and accelerating inflation has boosted expectations European nations will need to raise interest rates, even as countries including Ireland and Portugal struggle to contain debt. European Central Bank President Jean-Claude Trichet signaled on March 3 that policy makers may raise the benchmark rate at their next meeting to curb inflation, which reached a two-year high of 2.6 percent last month.
Gold Jumps
Gold rose to as high as $1,463.70 an ounce yesterday on speculation the U.S. will struggle to contain consumer prices. Federal Reserve Chairman Ben S. Bernanke this week said inflation must be watched “extremely closely.”
The MSCI Asia Pacific Index lost 1.9 percent this year through yesterday, compared with gains of 6.2 percent by the S&P 500 and 2.1 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.1 times estimated earnings on average, compared with 13.7 times for the S&P 500 and 11.3 times for the Stoxx 600.
Australian employers added 37,800 workers in March from the previous month, the statistics bureau said in Sydney today. That compares with the median estimate for a 24,000 increase in a Bloomberg News survey of 25 economists. The jobless rate was 4.9 percent.
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